Intelligence is the new infrastructure powering the energy transition

The energy transition today goes far beyond a shift in fuels or technologies and represents an integrated journey, that includes strategy, novel technology, and reimagining how the world produces, manages and consumes energy. Expanding renewable capacity, strengthening grids, developing hydrogen hubs and deploying energy storage systems are all critical steps, yet they address only part of the challenge because system stability and operational efficiency emerge from the intelligence layer that connects these assets into a fully integrated, adaptive network. Understanding and revolutionising this operational backbone through the use of intelligent control systems will provide optimizations that are needle movers for energy transition goals.

In fact this intelligence should now be reframed as infrastructure as it allows us the capability to manage the balance between reliability, sustainability and affordability in real time. Across the globe, where energy demand is rising and legacy systems remain dominant, orchestrating these assets effectively is essential. It is the only way to scale renewable energy while maintaining grid stability, especially in the face of the inherent intermittency of wind and solar generation.

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According to the International Energy Agency, global electricity demand is projected to increase at an average annual rate of over double the rate of total energy demand growth over the next few years. Meeting this growth while maintaining reliable, affordable and sustainable energy requires embedding intelligence at every level. Even the most advanced renewable facilities and storage systems would struggle to deliver consistent, cost-effective power, and grids would remain vulnerable to fluctuations without these capabilities.

Artificial intelligence and advanced analytics are already reshaping how energy systems operate. Battery energy storage systems employ AI-driven forecasting to predict demand fluctuations and optimize charging cycles, wind and solar facilities rely on machine learning to manage intermittency and improve efficiency, and hydrogen projects increasingly use digital twins to simulate operations, anticipate risks and optimize performance before construction begins. These capabilities are huge infrastructure investments and require careful design & planning to get the maximum utilisation of those assets.

Modern substations, once passive nodes, now analyse edge data and provide prescriptive insights that allow operators to anticipate maintenance needs, improve safety and enhance overall grid reliability. This digital sophistication is crucial to achieving operational excellence and decarbonisation objectives simultaneously, allowing energy systems to function efficiently while minimizing environmental impact.

For the Middle East, integrating intelligence has become particularly strategic. Countries such as the UAE and Saudi Arabia continue to rely on hydrocarbons as major economic pillars while leading in renewable deployment and low-carbon technology. Despite diversification into tourism, aviation, logistics and financial services, oil and gas remain central to the UAE economy, providing government revenues, funding infrastructure projects and ensuring energy security for a growing population and industrial base. The industry is evolving to support sustainability goals by adopting cleaner extraction methods, investing in carbon capture technologies and enabling integration with renewable energy, ensuring hydrocarbons drive economic growth while complementing a diversified energy ecosystem.

National strategies, including the UAE’s Net Zero by 2050 initiative and Saudi Green Inititative, highlight the critical role of technology. Carbon capture, hybrid power systems and data-led operational efficiencies are redefining conventional energy assets, and every new project, whether in solar, hydrogen or oil and gas, requires a technology-first approach. System intelligence, interoperability and digital design must be incorporated from the earliest planning stages rather than retrofitted later, ensuring energy systems can evolve over time. The real challenge is integration, which requires embedding systems intelligence into every project from the design stage. Achieving this demands a shift in mindset across the energy value chain, where engineers, technologists and strategists collaborate to design infrastructure that is resilient, adaptive and fully integrated with technology, while leadership teams recognise that investment in digital capabilities is not a cost but a source of efficiency, reliability and competitiveness.

Looking ahead, in order to achieve a decentralised, digitally integrated and carbon-neutral energy ecosystem it is important to treat intelligence as infrastructure rather than an add on. Success will not depend solely on physical assets but on how intelligently systems interact, self-correct and optimise performance across locations and sources. The convergence of energy, intelligence and impact offers a defining opportunity to reshape how societies meet rising demand, safeguard reliability and achieve sustainability goals. The decisions made today in planning, designing and managing energy systems will determine whether the transition achieves its potential, and embedding intelligence at every level is key to building a secure and sustainable energy future.

Narsingh Chaudhary is President of Fuels and Natural Resources, Black & Veatch.